Election Impact on Sweet 16 - Nov 5

[dan_s]

Energy & Power -
Stifel's Crude but Refined Thoughts: Impact of Likely Election Outcome - Stephen Gengaro -

As we await final election results, early indications are at least modestly positive for energy stocks. Specifically, the Republicans holding the Senate is likely a roadblock to an aggressive Green New Deal and a ban on hydraulic fracturing. Reelection is still a possibility, but President Trump's path to four more years looks cloudy. Assuming a Biden win, we see a Republican Senate as a barrier to sweeping progressive changes. In the medium- to long-term, this is likely more positive for energy stocks than a Blue Wave due to a likely watered-down energy transition plan. We view this as a near-term positive for EOG, DVN, MTDR and XEC in E&P world, and a plus to U.S. completion names including BOOM and LBRT